New York – MSCI announced this week that it will consult with the investment community on the potential building of MSCI Global Socially Responsible Indices. This initiative aims to support the benchmarking and other index-related needs of investors who seek to invest in accordance with specific values.
MSCI’s consultation will take place throughout March 4, 2011 and will include contacting some investors directly to seek feedback. The MSCI Global Social Responsible Indices are likely to leverage the KLD ESG indices which MSCI acquired within its purchase of RiskMetrics last year. Other established indices in the ESG space include FTSE4Good and the Dow Jones Sustainability Indexes.
The proposed MSCI Global Socially Responsible Indices would only target companies with high ESG ratings in comparison to their sector peers, and would exclude companies that are inconsistent with specific values.
MSCI is a global provider of investment decision tools including indices, governance analysis, portfolio risk and performance analytics among others. MSCI recently acquired Riskmetrics, one of the leading providers of risk management, corporate governance analysis and financial research tools, which propelled its offering in the ESG by acquiring ESG firms such as KLD and Innovest.